Kwacha Trades Firm as Money Market Remains Stable

Lusaka, Tuesday, December 23, 2025 – Zambia’s money market recorded a steady performance yesterday, with the Kwacha maintaining a narrow trading range against the US dollar across major commercial banks, reflecting balanced foreign exchange demand and supply conditions.

According to daily commercial bank exchange rate data for December 22, 2025, interbank buying rates largely hovered between K22.40 and K22.60 per US dollar, while selling rates ranged from K22.45 to K22.65 throughout the trading sessions at 09:30, 12:30 and 15:30 hours. This stability points to subdued volatility in the interbank market.

The market average interbank rate stood at K22.53/K22.58 (buy/sell) in the morning session and remained virtually unchanged by the close of trade, underscoring a calm trading environment. Retail rates were slightly wider, with average selling prices closing at around K22.78 per dollar, reflecting standard bank margins.

Most commercial banks adjusted rates marginally during the day, with movements largely within statistical noise. The absence of sharp fluctuations suggests that liquidity conditions remained adequate, supported by routine corporate dollar flows and stable demand from importers.

Market analysts note that the steady performance of the Kwacha in the money market indicates continued confidence, aided by disciplined liquidity management and predictable market participation. However, they caution that end-year demand pressures and external developments will remain key factors to watch in the near term.

Overall, yesterday’s money market activity reflected orderly trading and price stability, with no significant shocks recorded across the banking sector.